Entry point: $227.24
Goal for the year: $262.67
52-week trend: $119.60 – $240.51
📍Danaher Corporation (NYSE: DHR) develops professional, medical, industrial and commercial products and services worldwide. The company operates in three segments: natural sciences, diagnostics, environmental and application solutions.
Investment Details:
Capitalization: $163.06 billion
Dividends: $0.72 (0.31%)
Sector: Healthcare
Industry: Diagnostics & Research
Financials:
P/S Ratio (TTM): 8.11
EBITDA margin: 27.34%
Quarterly Revenue Growth (yoy): 34,40%
Activity
🔬Danaher’s Life Sciences segment is showing strong growth due to demand from customers working on vaccines and therapies against COVID-19.
In addition, demand for academic and research lab openings has increased. Management estimates that 60-70% of global research laboratories are now open at least partially. As more labs open, Danaher’s life sciences revenues could increase.
Quarterly Report
📃 On Oct. 22, Danaher released its quarterly report, reporting earnings per share of $1.72. For 2019, that figure was $1.06. Total revenue was $5.88 billion (+16.7% YoY) and beat estimates by $370 million.
The next report will be released in late January 2021 and the company is expected to earn $1.82 per share.
Opportunity
🔺 On Feb. 25, General Electric announced the sale of Cytiva. As part of GE, Cytiva generated $1.3 billion in free cash flow, while Danaher’s 2019 FCF was only $3.3 billion.
Thus, Cytiva significantly increases this figure. In fact, Danaher’s total FCF added 110% in the third quarter, to $1.5 billion.
